New Jersey Gov. Chris Christie is expected to sign legislation on June 27 that he said will save taxpayers more than $120 billion over the next 30 years in state and local government pension contributions.
The legislation would require public employees — teachers, firefighters, police, government workers — to contribute more to their pension plans. It would eliminate cost-of-living adjustments for current and future retirees, and it would increase certain public employee retirement ages.
The State Assembly approved a version of the bill June 23; the State Senate approved a similar bill on June 20 but will vote on the Assembly version on June 27.
According to a news release from Mr. Christie's office, the legislation will raise the funding ratio of state and local pension plans to more than 88% from the current 62% over the next 30 years.
The legislation also allows for future changes in public pension design, including employee contribution levels, retirement ages and future COLAs.
Also, the membership of the New Jersey State Investment Council, Trenton, will expand to 16 from 13, “and include more direct public employee stakeholder input,” the news release said. The council advises the state Division of Investment, which manages investments for the $74.7 billion New Jersey pension system.